Flat owners under the Sandwich Class Housing Scheme must pay a land premium before they can dispose of their flats, the Housing, Planning & Lands Bureau says. This is stated in the land lease and the agreement governing the sale and purchase for these flats.

As flats sold under the scheme are subsidised, owners are expected to live in them and cannot sell or rent them out unless they have paid back the government subsidy in the form of a land premium.

At the time of purchase, each owner signs a statutory declaration undertaking to reside in the unit, and the Government's policy is very clear on these requirements to ensure housing subsidies are put to proper use.